Section 8 housing administrator accused of stealing from endowment
PADUCAH, KY – Paducah police say the city’s Section 8 housing administrator has been arrested over accusations he stole more than $10,000 from a local endowment for scholarships for African-American students.
Police say 58-year-old Danny Fugate was arrested around 3 p.m. Thursday at his home on Martin Luther King Jr. Drive in Paducah on a warrant charging theft by unlawful taking of more than $10,000. Fugate is the treasurer of the McCracken County Community Career Endowment, and he is accused of embezzling the money from the fund.
The investigation began when members of the endowment’s board of directors reported to police that they suspected money was stolen from the endowment earlier this week.
Fugate was jailed in the McCracken County Regional Jail. Police say the investigation into the theft is ongoing.
Fugate is classified as a city employee in his role as Section 8 housing administrator, although the division receives federal funding. A spokesperson for the city of Paducah says Fugate is suspended with pay until the police investigation concludes. The city is also conducting its own internal investigation of the Section 8 Housing Division.
UPDATE: Thursday night, the McCracken County Community Career Endowment Board of Directors released a statement about the charge against Fugate. The statement says the board “could not be more shocked and disappointed” and that the endowment is fully cooperating with the police investigation. You can read the full statement in the pdf below this story.